17 September 2025 – written by Chris Welsch

Oslo, Norway – In a fjord more than 200 kilometers north of the Arctic Circle, three companies are collaborating on a project that will deliver sustainable AI infrastructure for all of Europe. Microsoft, Nscale and Aker have entered into a landmark deal that sees an ambitious new build out of renewable, scalable next generation AI infrastructure in the town of Narvik, worth an estimated $6.2 billion.

A port town once inhabited by Vikings, Narvik will now be connecting Scandinavia and the rest of Europe via its delivery of state-of-the-art AI and cloud services.

The location was chosen for its abundant hydropower and low local electricity demand, because of its small population and transmission capacity. These factors add up to affordable energy prices, complemented by a cool climate and established industrial infrastructure, making Narvik an ideal location for large-scale datacenter operations.

The three companies have signed a five-year agreement that will begin to deliver services in stages, commencing in 2026. The project will deliver advanced AI infrastructure powered by entirely renewable energy in secured grid capacity.

Graphics Processing Units, or GPUs, are the engines that power the world’s most advanced AI systems. By installing this in Narvik, Microsoft and the Nscale and Aker joint venture, will help meet the exponentially growing demand for efficient, scalable and sustainable AI compute power, and the needs of the private and public sector, creating new capacity for the development of the cloud and AI breakthroughs.

“We are incredibly excited for what this means for our customers, in Norway and across Europe, providing the latest and most advanced AI services from Microsoft,” said Jon Tinter, president of business development and ventures for Microsoft. “It is inspiring to see how Nscale and Aker are building cutting edge, sustainable AI infrastructure, and adding this facility to our comprehensive Microsoft cloud offering in Europe demonstrates our unwavering commitment to customers on the continent.”

For Josh Payne, founder and CEO of Nscale, the agreement “demonstrates our continued ability to execute at scale and establishes a new benchmark for AI infrastructure.”

“Delivering one of the largest GPU deployments in the world reflects the unprecedented demand for compute and confirms Narvik’s role as a strategic hub for AI in Europe. It’s a powerful testament of Nscale’s approach – bringing together data centers, GPUs and orchestration to accelerate access to AI compute while ensuring efficiency, compliance and sustainability. We are excited to continue scaling our partnership with Aker with this milestone,” Payne explained.

Øyvind Eriksen, president & CEO of Aker said: “This agreement with Microsoft — a long-standing partner to Aker — is a milestone for the joint venture with Nscale and for Norway’s role in enabling sovereign AI infrastructure. It underscores our ambition of converting clean energy into strategic digital capacity, and positions Narvik as a launchpad for Europe’s sovereign cloud. With trusted infrastructure, renewable power, and industrial readiness, Norway is stepping into a new era of value creation — one that is digital, secure and globally relevant.”